Global costs of cyber attacks in 2024 and the future

Rising in frequency and complexity, cyber intrusions present substantial risks to various sectors, including corporations, governmental entities, and private individuals. The financial toll of such incidents escalated dramatically in 2023, reaching an estimated global cost of 8 trillion USD, encompassing data breaches and hostile account seizures.

Projections from Cybersecurity Ventures anticipate a further uptick to 9.5 trillion USD this year. The integration of AI technology is poised to exacerbate this financial burden, with forecasts suggesting an 11% surge to 10.5 trillion USD by 2025.
Survey findings from Statista, gleaned from discussions with industry leaders, underscore the paramount concern posed by cyber assaults on businesses, closely trailed by operational disruptions and broader economic trends. Over the span of 2018 to 2023, 34% of respondents consistently identified cyber incidents as their foremost worry.

Furthermore, insights derived from the analysis of 2,700 risk management professionals hailing from 94 diverse nations and territories, as showcased in the 2023 edition of the Allianz Risk Barometer, corroborate the pervasive apprehension surrounding cyber threats. Nearly half—45%—of these experts pinpoint cyber incidents as the most dreaded source of business disruptions, eclipsing concerns over natural calamities and energy-related issues.

As per ExpressVPN’s recent study, the projected cost of cyber attacks for 2024 is as follows:

• USD 9.5 trillion a year
• USD 793 billion a month
• USD 182.5 billion a week
• USD 26 billion a day
• USD 1 billion an hour
• USD 18 million a minute
• USD 302,000 a second

Predicted global costs of cyber attacks Year Projected yearly cost of cyber-attacks globally (USD) Percentage rise from the previous year 2024 $9.5 trillion 19% 2025 $10.5 trillion 10.5% 2026 $11.3 trillion 7.6% 2027 $12.4 trillion 9.7% 2028 $13.8 trillion 11% 2029 $15.6 trillion 13% 2030 $17.9. trillion 15%

Forecasting the financial impacts of cyber attacks is challenging due to the complexity of digital threats. Insights from the study mentioned above offer a basis for future projections, considering tech advancements, industry trends, and global events. Attackers and defenders evolve tools, affecting costs and mitigation. Geopolitical and economic factors complicate predictions.

IBM’s 2023 Cost of Data Breach report shows customers bear damages as companies pass costs through increased prices. Understanding attack types, operations, and primary victims is crucial to minimizing cyber threat impacts.

Types of Cyber Attacks Ransomware

A potent malware, Ransomware is now the preferred tool for cybercriminals. Recognizing its severity, the White House has elevated ransomware to a top security threat. World Economic Forum identifies theft and cyber extortion, particularly ransomware, as top concerns for cyber and business leaders. Predictions by Cybersecurity Ventures indicate a staggering rise in annual costs, reaching $265 billion by 2031, driven by increasingly sophisticated attacks every two seconds.

Cryptocrime

Cryptocurrencies serve as a double-edged sword: empowering some and enticing others with get-rich-quick promises while leaving unfortunate souls bankrupt. They also provide fertile ground for financial crimes due to their traceability limitations. The rise of decentralized finance (DeFi) and the easy accessibility of cryptocurrencies amplify exploitation avenues.

Cybercriminals execute various scams, like rug pulls and pump-and-dump schemes, and target exchanges to siphon funds. Predictions by Cybersecurity Ventures suggest a staggering USD 30 billion cryptocurrency crime cost in 2025, marking a worrying 15 percent annual increase from 2021’s USD 17.5 billion loss.

Phishing

Phishing involves cybercriminals posing as legitimate entities to steal sensitive data through emails or texts. Users are tricked into clicking harmful links or downloading files, enabling identity theft or system breaches. It accounts for 39.6% of email attacks, exploiting human error over system flaws.

(Image credit) DDoS attacks

Distributed Denial of Service attacks overload a service, like a traffic jam blocking roads. In 2023, Cloudflare reported a 117% spike in these attacks. These targeted retail, shipment, and PR sites during holidays, affecting their availability. It’s a cyber assault where multiple systems flood a target, rendering it inaccessible.

Malware

Malware, or malicious software, includes viruses, worms, and Trojans, harming computers and networks for cybercrime. A common tactic, loader attacks, employs innocent-looking programs to covertly deliver malware. With over 1 billion unique malware programs, Trojans dominate at 58%. Malware can lead to data breaches, system harm, and espionage, posing significant threats to cybersecurity.

Cyber attacks by industry

Some industries face higher cyber attack risks due to their business nature. Sectors dealing with personal data are prime targets. Vulnerable industries include banks (credit card and client data), healthcare (health records and social security numbers), corporations (intellectual property and client databases), and higher education (enrollment and financial records). Hackers target sensitive information for financial gain or disruption. Vigilance and robust security measures are crucial across these sectors to mitigate risks.

Final words

We advise proactively developing a cyber-resilient cybersecurity program, enabling security leaders to predict, withstand, and recover from sophisticated cyberattacks. Adopting a risk-based approach prioritizes controls for critical vulnerabilities, making it more cost-effective than traditional models. Defending against modern threats demands a multi-layered strategy: constant monitoring, comprehensive visibility, and an incident response plan to combat ransomware, social engineering, cryptocrime, and state-sponsored attacks.

Featured image credit: kjpargeter/Freepik.